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fixed overhead volume variance

CCatherine9y ago
should we multiply the fixed volume variance with the standard absorption rate? I don't get the answer when I multiply however the text says multiply with the standard fixed absorption rate .
John MoffatJohn MoffatTutor9y ago#1
The volume variance is the difference between the actual and budgeted production, multiplied by the standard fixed overhead cost per unit (not per hour). I suggest that you watch my free lectures on this - the lectures are a complete free course and cover everything needed to be able to pass Paper F2 well.
CCatherine9y ago#2
Thank you Sir .
John MoffatJohn MoffatTutor9y ago#3
You are welcome :-)
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